GBP: Technical indicators warn of additional losses - BBH

In view of analysts at BBH, technical indicators warn of additional losses for GBP and any break of the $1.2950-$1.3000 area could spur a move toward $1.2800-$1.2825.

Key Quotes

“The market's take away from the Bank of England meeting, at which GBP15 bln more was earmarked for the funding for the lending scheme was that the first hike will be delivered deeper into H2 18 than previously anticipated.  This saw sterling record a key reversal by making a new 11-month high before selling off and settling below the previous day's low.   There was follow through selling before the week that saw sterling slip through its 20-day moving average (~$1.3050).  The technical indicators warn of additional losses.  The RSI and MSCDs have turned, and the Slow Stochastic is set to do so early this week.  A break of the $1.2950-$1.3000 area could spur a move toward $1.2800-$1.2825.”